Home Depot $HD has been pulling back against its rally that started in late December. If price breaks below $180, it might be falling back into a bearish correction or at least consolidation mode, which could lead the S&P500 into a correction phase as well. Here's an excerpt from thestreet.com:Growing softness in the housing sector - with slowing home sales - have sparked concerns recently about Home Depot's ability to continue delivering returns on that scale, but the company's executive vice president and chief financial officer, Carole Tome, addressed the issue in the earnings call on Feb. 26. Pointing out that average home equity has doubled since 2011 and now stands at $193,000, giving homeowners a substantial resource on which to draw for upkeep work, she said, "The other aspect of the housing market is just the age of the housing market. Fifty-two percent of the homes are older than 40 years. We know that spend for homes that are 40 years and older is 30% greater than spend on homes less than 10 years."From Home Depot and Johnson & Johnson Are Among Stocks Driving the S&P 500Home Depot Daily Chart(click to enlarge)Bears Still in Control?- As we can see on the daily chart, price was in bearish correction since September after price pushed above $215 a share. It fell to about $158.10 before the December recovery.- The recovery found resistance right around $193, near a previous support around around $191. - Also, we can see that the retreat was accompanied with relatively strong volume compared to the preceding rally - a bearish sign.- Price also came back below the 200-day simple moving average (SMA) after briefly cracking it. This could be a sign that bears are still in charge as well.Critical Support:- As price retreats, it is now testing the $180 area, which is a previous support/resistance pivot. - Also, we have the 100- and 50-day SMAs around here. Meanwhile, the RSI is right around 40. - A bullish market should keep the RSI above 40 while keeping price above $180 (forgiving a brief violation). - However, if price clearly breaks below $180, and say closes below $178 for the week, we should consider a possible bearish continuation in the short to medium-term. Bearish Projection:- Let's say price DOES indeed break below $180 AND the S&P500 contracts. - An aggressive bearish projection goes to the $136-$140 area, with $145 as a possible support as well. - The 200-week SMA (around $154) would be another viable projection. - We can at least anticipate pressure down to the $160 area in this bearish scenario. HD Weekly Chart(click to enlarge)